Dubai’s Roads & Transport Authority has awarded an AED802m ($218.3m) contract for the third phase of its Dubai Water Canal Project to local/Belgian Bel Hasa Six Construct.  

The scheme involves the construction of a canal linking Dubai Creek with the Gulf extending from Sheikh Zayed Road, passing across Safa Park and Jumeirah 2, and terminating at the Gulf near the southern end of the Jumeirah Beach Park.

The scope of work phase 3 of the project includes drilling the water canal and building footbridges and marine transit stations. The works also entail building the sides of the canal.

In May, MEED reported that local/Belgian Bel Hasa Six Construct was the low bidder for the two financial options that all firms submitted prices for the contract for phase 3. The company submitted offers of AED908m ($247m) and AED802m.

The second-lowest bidder for those two options was the local/UK Dutco Balfour Beatty (DBB) with prices of AED1.063bn and AED883m. The other bidders were the local Al-Naboodah Contracting Company, Beijing-based China State Construction Engineering Corporation and the local/Australian Habtoor Leighton Group (HLG).

China State Construction Engineering Corporation was the only firm to submit a price for the third financing option. DBB and the Chinese firm also submitted separate alternative offers, but the exact details of those offers were not revealed.

In early May, the RTA awarded an AED384m contract to China State Construction Engineering Corporation for phase two of the project.

The second phase includes the construction of bridges across the Al-Wasl and Jumeirah Beach roads above the Dubai Water Canal, enabling the passage of 8.5-metre-high yachts. It also includes the construction of a bridge leading to the proposed peninsula to the south of Jumeirah Park.

In March, MEED reported the RTA had received bids on 25 March from contractors for the deal to build the second phase of infrastructure for the project. Firms submitted two offers: one was with seven years of financing; the other for a construction-only contract.

The low bidder for the construction-only contract was China State Construction Engineering Corporation with a price of AED384m, about 5 per cent below the second-lowest bid submitted by India’s Afcons. Afcons did not submit an offer with financing.

The lowest bidder for the deal with seven years of financing was HLG with a price of AED487m. The low bid was about 6 per cent lower than the second-lowest price of AED516m, submitted by China State Construction Engineering Corporation.

Also in March, the RTA awarded a contract to a joint venture of US-based Parsons International and the UK’s Halcrow to supervise the construction of the project. The scope of work includes elevating the Sheikh Zayed, Al-Wasl and Jumeirah Beach roads, relocating utilities and constructing the canal.

The scheme is split into three construction contracts. Parsons is responsible for construction supervision of the first two packages related to the roads and bridges, while Halcrow will be responsible for the third package of canal excavation and marine works. The first phase of the project includes elevating Sheikh Zayed Road (six lanes in each direction) and relocating utilities using micro tunnelling to facilitate the canal construction.

The RTA said Parsons will start construction works on the traffic diversion on Sheikh Zayed Road in the direction from Dubai to Abu Dhabi next July and the traffic movement will be diverted starting from 25 October.

In October 2013, Turkey’s Gunal was awarded a deal to build a 16-lane bridge that will take traffic on Sheikh Zayed Road across the Dubai Water Canal project. The contractor is providing funding for the works.

The RTA is managing the Dubai Water Canal infrastructure work on behalf of Meydan Group and Meraas Holding. The two local developers plan to build real estate schemes on either side of the new waterway.

One of the projects planned by Meraas and Meydan is the Canal Gate Tower, which will be built on the banks of the canal on Sheikh Zayed Road. The tower is a mixed-use development that comprises more than 3.5 million square feet, featuring 468 apartments, 470 service apartments and 617 hotel rooms, as well as more than 400,000 sq ft of retail space and 735,000 sq ft of commercial office space.

Another planned scheme is a shopping mall that will straddle the canal with an enclosed multi-level retail bridge that contains shops, restaurants and entertainment venues.